How's That Income Doing

Back in August I observed that the borrower's income seems to weigh heavily on distress rates (late or worse). With two more months of statistics under Prosper's belt, I felt it was time to revisit this topic and see how the loans were fairing.

Income	AA	A	B	C	D	E	HR
Income > $50k	0.41%	2.34%	4.79%	4.81%	7.17%	14.13%	17.57%
Income >$25k	1.20%	1.77%	3.61%	5.10%	7.81%	11.85%	20.22%
Unstated or <$25k	1.65%	4.15%	4.05%	7.03%	11.75%	19.90%	31.69%

This is very similar to the trends reported in August. I also picked up those with incomes >$50k, and those were surprising numbers. More income doesn't appear to be helping the C and E borrowers.

There's also something funny with the ROI numbers. Prosper now has enough loan information to extrapolate estimated returns for these searches and the low or no income loans are fairing better than the income producers.

Prosper's ROI	AA	A	B	C	D	E	HR
Income > $50k	9.63%	5.80%	4.96%	4.73%	1.42%	-10.31%	-15.38%
Income >$25k	9.62%	6.78%	7.39%	4.90%	2.12%	-4.57%	-20.91%
Unstated or <$25k	10.29%	11.62%	10.77%	6.33%	-0.01%	-11.53%	-41.62%

Well heck, that's just gone and messed up my plans. This is going to take more analysis. At least I was right that income reduces default rates.